Question: After implementing the EOQ model, the total inventory cost for Best Pallets Ltd . would be $ 1 0 0 0 . Comparing this with

After implementing the EOQ model, the total inventory cost for Best Pallets Ltd

.

would be $

1000 .

Comparing this with the previous total inventory cost of $

1800,

it's evident that implementing the EOQ model would lead to significant cost savings.Therefore, it is highly beneficial for Best Pallets Ltd

.

to change to the EOQ method of inventory management. By optimizing order quantities, the company can effectively reduce its inventory costs, improving overall profitability and operational efficiency.

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